Media & Entertainment

Free Apps Account For 89% Of All Downloads; Most Of The Rest Under $3; iOS Store Biggest Of Them All

Comment

The mobile app market, currently still led by app trailblazer Apple, is continuing to grow at a rapid pace: according to new research from Gartner there will be nearly 46 billion mobile app downloads made this year, nearly double the 25 billion downloads in 2011. Among those downloads, free will continue to reign supreme: 89% of those downloads worldwide will cost nothing. That is also appearing to have a knock-on effect on apps that are sold for a price: 90% of paid apps will cost less than $3.

These are pricing trends that will only become stronger. By 2016, Gartner is predicting the the mobile app market will see almost 310 billion downloads, with 93% of those free apps. These numbers point to growing opportunities for those companies that help app developers monetize their apps in other ways: not just through mobile advertising, but also through developing models for in-app purchases, subscriptions and other ways to get users to pay later for content. Indeed, in-app purchases, Gartner predicts, will drive 41% of all app revenues by 2016.

And just as free apps will continue to grow in popularity, so will the frequency of lower-cost paid apps. Apps that cost between 99 cents and$2.99 will account for 96% of all paid downloads by 2016, the analysts predict.

The rise of in-app purchases is a strong one: apps featuring IAP accounted for just 5% of all apps in 2011, accounting for only 10% of revenue. The number of apps with IAP will grow to 30% by 2016, when they will contribute 41% of revenues.

Which platform dominates? While we have seen the rise of multiple Android stores (perhaps the most popular being from Google and Amazon), as well as Microsoft making a big push on its Marketplace (now at 100,000 apps) and others like RIM also promoting its app storefront, Apple — creators of the App Store concept — will continue to be the most popular.

However, Apple’s popularity is gradually diminishing. Apple’s iOS App Store will account for more than 21 billion of the 45.6 billion mobile app downloads this year, Gartner says. That’s a rise of 74% — meaning that it’s not outpacing the growth of app downloads overall, which will have grown by 83% between 2011 and 2012.

“Apple’s market share is the largest, considering its App Store accounts for 25 percent of available apps in all stores,” writes Brian Blau, research director at Gartner.

But he also points out that growth, in fact, is being led by apps on other platforms: “The number of apps available is driven by an increasing number of stores in the market today that include platform owners, device vendors, communication service providers (CSPs) and others who want to offer core mobile app services. These stores will see their combined share of total downloads increase, but demand for apps overall will still be dominated by Apple, Google and Microsoft.”

Gartner also notes that Amazon is an example of how third-party stores also have a role to play in the game. Amazon’s Appstore and Facebook’s App Center are two that have stood out here. Gartner believes that Facebook in particular could become a “powerful competitor” to the platform stores themselves, “due to its strong brand and leading position in social networking and gaming.” That, of course, is predicated on people wanting to continue using apps with Facebook social integration in them, which is a prerequisite for apps to be offered via Facebook today.

Also noted are the rise of other independent Android stores, which have come out to cater to the proliferation of official and forked Android devices on the market. In China, that trend has been particularly strong, notes Sandy Shen, a research director at Gartner, because Google Play has a “lack of presence”:

“In China, there is a boom market of independent Android stores, due to the lack of presence of Google Play and ‘weak’ stores from [carriers]. We expect to see more new entrants to the market, aiming to deepen relationships with their customers and/or to capture some of this growth market.”

[Image: yoghaert, Flickr]

More TechCrunch

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

1 day ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

1 day ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats, unveils ‘family’ plan, dark mode and more

We all fall down sometimes. Astronauts are no exception. You need to be in peak physical condition for space travel, but bulky space suits and lower gravity levels can be…

Astronauts fall over. Robotic limbs can help them back up.

Microsoft will launch its custom Cobalt 100 chips to customers as a public preview at its Build conference next week, TechCrunch has learned. In an analyst briefing ahead of Build,…

Microsoft’s custom Cobalt chips will come to Azure next week

What a wild week for transportation news! It was a smorgasbord of news that seemed to touch every sector and theme in transportation.

Tesla keeps cutting jobs and the feds probe Waymo